Don your Victorian regalia, our fanciful readers, and you may earn your place in the annals of gaming history by appearing in Lionhead's much anticipated RPG, Fable 2. Just throw on that ratty old frock coat and strike your most Quixotic pose in front of a camera being operated by a tight-lipped, non-judgmental friend. Save the resulting blackmail image as a Ye Olde JPEG, send it in to Lionhead's art department, and you could serve as a model for one of the many paintings strewn across the interiors of Albion's exotic homes.

It's a neat way to get your mug in what will no doubt be one of this year's blockbuster titles -- though you've only got until next Wednesday to submit your best Pimpernel-esque portrait. We trust you can carve out some time between the big quail hunt and the late night ether frolic to read the rules and regulations before you commit your extravagant visage to film.

Still need insipiration? Look no further than the above image of Joystiq's own Justin McElroy. If there's a man who better embodies the unflappable spirit of a colonial gentleman, we have yet to meet him.

Though his vision usually outstrips his games' technical prowess, super developer Peter Molyneux is still responsible for some the most unique gaming experiences ever put to code. He's let us soar through the air on an enchanted rug, mow down civilians in a near-future dystopia, and has even let us play god once or twice.

Unfortunately, after having the distinct 'pleasure' of being absorbed by larger studios on two separate occasions, many of his most memorable creations have since been left to the pages of history. Even so, while Molyneux is currently courting players with his canine-friendly Fable 2, he recently told Shacknews that he's open to revisiting his earlier games, particularly Syndicate.

"I really would love to redo a version of Syndicate," he commented, adding that while he has not been given the go ahead to knock the dust off his past achievements, "one day, I'm sure that opportunity is going to come up and I'd love to do it." Of course, he's said this all before, but we continue to hold out hope. In a world filled with one mundane first-person shooter after the next, we could really use another Magic Carpet.

"It's something about you Americans and nipples, there's something you hate! If this was Germany, I'd be romping around naked right now."

-Peter Molyneux at his GDC lecture

Want to know why Peter Molyneux's replacing your mini-map with a breadcrumb trail? Whether or not his character has unprotected sex? If same-sex marriage is still on the table? Journey on, dear reader, journey on.

"I'm just going to put the gum on the side of the monitor here. I'll remember to get it."

With that humble beginning, Peter Molyneux took the stage to reveal some features of his RPG adventure, Fable 2.

In a soon to be published interview with X3F, Fable 2 creator Peter Molyneux revealed some new details concerning Fable 2 co-op and how players will earn money in the game. First and foremost, Molyneux noted that there are no gold drops in Fable 2. In other words, monsters don't drop large bags of cash when they die (which is somewhat more realistic really). Instead, Fable 2 will have players earn money the old fashioned way: working for it. There are a range of jobs available to players such as being a blacksmith, assassin or woodsman. There is also one other job which specifically concerns cooperative play: henchman. Co-op players will become the henchman when they visit the worlds of other players. How exactly a player earns money as a henchman wasn't discussed. It raises some interesting questions such as whether or not the main player will actually have to pay henchmen, for example. Finally, when asked about whether or not male characters will be able to impregnate their female co-op partners, Molyneux noted "it's certainly an interesting idea," adding, "no promises." We hope the feature makes it into the game, because we're dying to have CliffyB's digital baby.

Shane Kim has been getting a lot of coverage at this year's DICE summit, and it's not just because he's got a thousand-watt smile that lights up a room. Microsoft has been pretty cagey about 2008 so far, and it seems like, thanks to Kim's hinting, the first details of a schedule for the year are just starting to solidify. If you want to know where your favorite upcoming title stands, look no further than MTV's comprehensive interview with Kim on all of the company's big 08/09 guns.

Besides hearing about how great Fable 2 is going to be (answer: very) we were especially intrigued by Kim's reluctance to pin down Alan Wake as a 2008 title. Also, though we were disappointed by the cancellation of the Marvel MMO, we have to admit we agree with the reasoning: In short, Microsoft noticed the dozens of subscription-based MMO carcasses that littered the road and decided that, perhaps, advancement was unwise. We heartily concur.

Microsoft Games chief Don Mattrick has confirmed (or, in some cases, reaffirmed) via a memo a handful of exclusive titles to arrive on Xbox 360 in 2008. The list of assuredly not canceled titles include Halo Wars, Too Human, Fable 2, Alan Wake, Splinter Cell: Conviction and "several exciting yet-to-be-announced titles."

Following the list of 2008 exclusives, Mattrick continues to say that "Xbox 360 will be home to the next versions of great franchises like Grand Theft Auto and Resident Evil ... Madden and FIFA." We're not sure if he meant to imply Resident Evil 5 is due out this year, but it's certainly a suspicious line. Other than this year, no schedule was given as to the release of these titles, although we now get a sense of what Microsoft feels will keep gamers happy in this post-Halo 3 world.

Fable 2's combat and canines aren't going to be the only next-gen things about the game. Developer Lionhead also wants to replace the tired old "Arseface" insult that villagers yell at the hero when they hate him. They've turned to their community of loyal fans (yes, you!) for a replacement on their official blog.

The comments section is already filling up with soon-to-be-classics, but we're especially fond of "Groin Crab," "Loner McLonelyton" and the puzzling "Big Girls Blouse." Your own personal chance at immortality is just one click away.

[Via CVG]

EGM's Shane Bettenhausen has caused quite a ruckus as of late by suggesting in the latest 1UP Yours podcast that a high-profile first-party Microsoft game has been canceled. The first game confirmed to be alive was Banjo-Kazooie 3. Now, the developers of Fable 2 and Alan Wake have both chimed in to say their games are also still breathing. We wonder if all Microsoft developers wouldn't benefit from a role call meeting, where attendees are told to simply raise their hands if their project was canned.

Of course, that's assuming any project was canceled at all. Bettenhausen originally said, "a big Microsoft first-party title that has been in the works for a very long time, that people are very excited for, sounds like it's being canceled." That's far from a confirmation, although there may be some merit to a project being in trouble. Bettenhausen responded to the proliferation of his statement in the comments to one of his blog posts (search for "egmshane"), but only to confirm the game in question was neither Alan Wake nor Banjo-Kazooie.

IGN's Matt Casamassina silenced (most) of his critics by providing video footage to prove he did, in fact, play a DS version of Halo. C'mon Bettenhausen, at least give us a riddle or some enigmatic limerick to analyze.

Update: As noted by GameSpot, the developers of Too Human and Halo Wars have also chimed in to say, "It's not our game!"

Read - Is Alan Wake canceled?
Read - Is Fable 2 canceled?

So, we might have sort of wanted to work at Lionhead Studios before we saw this latest video diary from the company, but now, after seeing the way they rung in their 10th anniversary, we're putting it on our lifelong to-do list, along with "skydiving," "Rocky Mountain climbing" and "going 2.7 seconds on a bull named Fu Manchu."

After all, this diary focuses on the nerdiest guys at the company, the guys coding the development tools for Fable 2, and even they manage to seem cool. ... Well, as cool as someone who takes two days off to make a Pyramid Head costume can seem. It's all relative, we guess. If you're behind, catch up with part 1 and part 2.

To be honest, we'd really like these Lionhead video diaries a lot more if they found Peter Molyneux under the covers with a flashflight and a video camerea, speaking in hushed whispers, gabbing about how so and so said this or that and, oh yeah, Fable 2's one-button combat is a pretty neat idea. So, we're missing the bedroom confessional aspect but we've still got the whole "one-button combat" thing. Of course, Molyneux's been talking about the concept for some time now, as far back as last August and as recently as, well, Fable 2's E3 showing. Our favorite part: the crazy sword instructor. C'mon Peter, don't you have some juicy gossip about that guy? We'll just use the power of our imaginations:

Dear video diary: Today, we had a sword instructor come into the offices to show us how to handle a sword realistically (Alan was a little upset we didn't consider him, but his "totally sweet" lightsaber skillz don't really count). Nevertheless, this chap was flinging a sword around like some sort of hyperactive Errol Flynn impersonator. To be honest, we quite feared for our safety! It wasn't a few times that the edge of one of his swords ("this is a Cutlass, commonly used by sailors") gently skimmed my sweatervest, shaving off a nearly imperceptible layer of pilling. My grand mum knit me this sweater! Anyways, one-button combat ...

Peter Molyneux describes Fable 2's combat as "kind of a little bit mad." It's just one blue button; a system that doesn't punish casual gamers (button-mashers), but still satisfies hardcore players. The number of experience points earned in any given skirmish is determined by how skillfully one uses the X-button. Timed button presses, including counters, are worth more than mashing, while incorporating blocking and charge attacks (both accomplished by holding X) will net you even more points to build your hero. The attack button is also context sensitive, as you'll automatically pick up and toss items strewn about the ground if your foes are at a distance, or you'll grab an enemy and shove him into a wall if you're battling in close quarters.

Magic and ranged attacks (mapped to the Y- and B-buttons) will apparently operate in much the same way, but only the X-attack was on display at E3 in Lionhead's "Combat Testbed," a visually-lacking demo not meant to impress, but to arouse curiosity. "I know, it's bloody awful," Molyneux said of the current level of polish, while urging us to focus on more abstract concepts, like the amount of dedication that the development team has put into Fable 2's design. Molyneux is still haunted by his bold claims about the original Fable, lamenting his infamous 'greatest RPG evar' comment, made while Fable was still a rough draft. But the celebrated game designer insists that this -- to be the greatest -- is the goal for Fable 2, he's just not as (publicly) convinced he'll get there.

Whilst chatting with Peter Molyneux during a lightning fast, round robin interview session (8 tables, 8 Xbox luminaries, 4 minutes each: more at X3F), we learned two surprising things about Fable 2. First of all, we have bad news for all the would-be Fable 2 pirates: seafaring has been cut from the game. Molyneux told us that Lionhead had intended to allow players to become ship captains and sail the ocean blue, but eventually made the decision to cut the concept from the game. According to Molyneux, it's part of his job to cut things out of Fable 2 so that what is left -- the combat, for instance -- is really polished. Molyneux did inform us that the game will still contain pirates though, so that should serve as some consolation. As for the (possibly) good news: since we were on the subject of pirates, we cheekily asked Molyneux if Fable 2 will have ninjas. Molyneux responded, "Ninjas? Well, we aren't saying anything about that. It's funny you should ask that question." Why, Peter? Why is it funny that we should ask that question!? Tell us more!

So then, for those keeping score on Fable 2:

Death -- No
Seafaring -- No
Pirates -- Yes
Ninjas -- Mmmm ... could be.

After sampling the delights of Fable 2 (more on that soon) we had a little chat with Peter Molyneux about death. Specifically, we talked about how death would be treated in Fable 2. Typically, death in video games means loading the previous checkpoint or restarting a given level. According to Molyneux, such will not be the case in Fable 2. Instead, when overpowered and bested by an enemy, players will be left with a permanent reminder of their defeat: a scar.

Granted, the scars are cosmetic, but they do affect how NPCs perceive the main character. The idea apparently came to Molyneux after watching Casino Royale, in which James Bond undergoes particularly brutal torture during one scene and finds himself in the arms of a woman during the next. According to Molyneux, "in Hollywood, heroes always win the day." That's all well and good, but what if you don't like the idea of being disfigured?

Players will have two choices it seems: don't lose, or pay a hefty fee to keep your attackers from scarring you. Molyneux revealed that testers are willing to lay down hefty sums of gold -- 1000, which is enough to buy a hut -- in order to avoid scarring. So there you have it, you won't die in Fable 2 -- even bosses can't kill you, they just leave deeper scars -- but you'll pay a price (one way or another) for failing in combat.